Mobile Banking Platform to Boost Financial Mobility in East Africa; EMERGING MARKETS
Monitise has signed a new agreement to introduce a mobile banking and payments platform in East Africa.
Monitise, whose key partners include VocaLink, Metavante, HSBC, first direct, Alliance & Leicester, Royal Bank of Scotland, NatWest, Vodafone, Orange, O2, T-Mobile and Hutchison 3G, has signed heads of terms with Made In Africa, the organisation which is helping spearhead economic growth in East Africa.
The proposed partnership will see the establishment of a joint venture, Monitise East Africa, which will be 51 per cent owned by Monitise and 49 per cent owned by Made In Africa.
The new platform will cover Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Kenya, Sudan and Zambia. It brings a range of banking and payment services to a potential audience of over 220 million people.
With mobile phone ownership currently growing at 50 per cent per annum across Africa, coupled with 75 per cent of the population not having access to modern financial services, both partners said they believed the deal to be significant.
Under the agreed heads of terms, an annual license fee of pounds 800,000, plus volume-based royalties, will be payable to Monitise from Monitise East Africa for the first five years, to be capped at pounds 1.8 million per annum. Following this, an extension to these terms may be granted, subject to agreement between both parties. …